The Asian Development Bank (ADB) will provide $50 million loan to promote, fund, and implement public-private partnership (PPP) infrastructure projects in the country.
The Manila-based lender and the government of Bangladesh signed a loan agreement in this regard on Thursday.Economic Relations Division (ERD) Secretary Fatima Yasmin and ADB Country Director Manmohan Parkash virtually signed the loan agreement on behalf of Bangladesh and ADB, respectively.
SM Anisuzzaman, Chief Executive Officer of Bangladesh Infrastructure Finance Fund Limited (BIFFL) signed the project agreement.
“The project will strengthen BIFFL’s capacity to mobilize private investments, develop infrastructure projects, and create jobs, which will accelerate the economic recovery process after the coronavirus disease (COVID-19) pandemic,” an ADB release quoted Manmohan Parkash as saying.
The project will generate about 3,000 jobs in PPP projects supported by BIFFL by 2024 and help implement PPP infrastructure subprojects developed by government agencies, he informed. In addition to catalysing greater private sector commercial infrastructure financing and investment, the project will also help the rollout of the government’s PPP strategy, Parkash added.
Using ADB’s financial intermediary loan, the Strengthening Bangladesh Infrastructure Finance Fund Limited Project will provide long-term local currency financing for qualified PPP infrastructure subprojects. ADB has been a long-standing partner to support BIFFL to promote PPP program and develop its pipeline of projects. ADB has also assisted the government to develop the PPP Act, set up the PPP office, and an institutional framework for PPPs in addition to supporting priority sectors of Bangladesh as a transaction advisor. A $650,000 technical assistance grant from ADB’s Financial Sector Development Partnership Special Fund will support BIFFL to review and update its corporate strategy, as well as assess and improve capacity to manage environmental and social safeguards, and project implementation.